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Wednesday, May 22, 2013 1:33:03 PM
Dan - I think it's very conceivable that the stock will go back over a dollar. A couple things have to happen first.
One - we need the company to establish a revenue stream. Getting a check for the tailings would be a good start. None of us wants equity financing as that would dilute our value.
Two - we need a dependable processor. The current strategy has been a disaster, but it's not completely LSTG's fault. The best solution, IMHO, is to build our own plant or partner with another producer who has a processing facility and could give us some of their capacity.
Three - the mineral content of our tailings and by association our land needs to meet or exceed the optimistic results that we saw last year.
Four - it would really help if the price of gold and silver rebounded and reached new highs. Gold is off over 20% from its high. Silver is worse. Although gold gets the attention, I think silver is where this company can make a lot more money. Increased industrial demand for silver would be a good thing.
Once steps 1 - 4 come to fruition, LSTG could become a desired buy-out by larger mining or giant diversified companies. I think that's when the big payday would take place. But to reach that point, LSTG has to execute, and execute well. I look at this the same way I look at someone developing a viable business or cellphone app. The individual himself probably doesn't have the expertise to make his small company into a billion dollar company. But if Apple, Google, or Microsoft come along and see the value in it; he could be a billionaire very quickly.
I'm also putting my money where my mouth is on this stock. Like most everyone else, I'm underwater on LSTG. I've averaged down to less than 6 cents a share. The risk to me is that I've got 15% of my retirement savings at stake, including 50% of my Roth. If the stock becomes worthless, it hurts. But if it goes up to $5/share, I could retire in 3.5 years when I'm eligible to start making withdrawals and not have any money worries for the rest of my life. If it goes up to just $1, that's a huge boost and would alleviate a lot of worry associated with retirement. The effect would be that I could probably retire at 62 instead of 67.
One - we need the company to establish a revenue stream. Getting a check for the tailings would be a good start. None of us wants equity financing as that would dilute our value.
Two - we need a dependable processor. The current strategy has been a disaster, but it's not completely LSTG's fault. The best solution, IMHO, is to build our own plant or partner with another producer who has a processing facility and could give us some of their capacity.
Three - the mineral content of our tailings and by association our land needs to meet or exceed the optimistic results that we saw last year.
Four - it would really help if the price of gold and silver rebounded and reached new highs. Gold is off over 20% from its high. Silver is worse. Although gold gets the attention, I think silver is where this company can make a lot more money. Increased industrial demand for silver would be a good thing.
Once steps 1 - 4 come to fruition, LSTG could become a desired buy-out by larger mining or giant diversified companies. I think that's when the big payday would take place. But to reach that point, LSTG has to execute, and execute well. I look at this the same way I look at someone developing a viable business or cellphone app. The individual himself probably doesn't have the expertise to make his small company into a billion dollar company. But if Apple, Google, or Microsoft come along and see the value in it; he could be a billionaire very quickly.
I'm also putting my money where my mouth is on this stock. Like most everyone else, I'm underwater on LSTG. I've averaged down to less than 6 cents a share. The risk to me is that I've got 15% of my retirement savings at stake, including 50% of my Roth. If the stock becomes worthless, it hurts. But if it goes up to $5/share, I could retire in 3.5 years when I'm eligible to start making withdrawals and not have any money worries for the rest of my life. If it goes up to just $1, that's a huge boost and would alleviate a lot of worry associated with retirement. The effect would be that I could probably retire at 62 instead of 67.
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